Private sector lender IDFC First Bank reported ₹680 crore loss in the second quarter of the current financial year as a result of of one-time tax impact of ₹751 crore due to markdown of existing deferred tax assets, following the change in corporate tax rates.
“Bank decides to mark down deferred tax assets as a result of reduction in corporate tax rates from 35% to 25%,” the bank said in a statement.
The lender reported net interest income of ₹1,363 crore, up 202% year-on-year from the ₹451 crore, which is the period before the merger of IDFC Bank and Capital First.
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The net interest margin for the bank grew to 3.43% for the quarter from 1.56% of the pre-merger period.
The gross NPA ratio remained stable sequentially which was 2.31% compared with 2.32% in the first quarter.